ANN ARBOR, MI - ENDRA Life Sciences Inc. (NASDAQ:NDRA), a company specializing in electromedical and electrotherapeutic apparatus, has announced the approval of a reverse stock split following a Special Meeting of Stockholders held on Monday. The reverse stock split will consolidate shares at a ratio of 1-for-35, as determined by the Board of Directors after the meeting.
The decision for the reverse stock split was voted upon by shareholders and is detailed in the definitive proxy statement filed with the Securities and Exchange Commission on September 16, 2024. The results of the vote were 4,241,540 for, 2,792,189 against, and 18,228 abstentions. The company's Fourth Amended and Restated Certificate of Incorporation will be amended to reflect this change, which is to be executed at the discretion of the Board of Directors any time before the one-year anniversary of the Special Meeting.
The reverse stock split is expected to reduce the number of outstanding shares of ENDRA Life Sciences' common stock, which trades under the ticker symbol NDRA on the Nasdaq Stock Market LLC. The company's Board of Directors believes this action will be beneficial for the stock's marketability and compliance with Nasdaq's listing requirements.
This corporate action comes as part of ENDRA Life Sciences' strategic initiatives to realign its capital structure. The company, headquartered at 3600 Green Court, Suite 350 in Ann Arbor, Michigan, has been incorporated in Delaware and operates under the IRS Employer Identification No. 26-0579295.
The information regarding the reverse stock split and the results of the Special Meeting was based on a press release statement and the recent 8-K filing with the Securities and Exchange Commission. The company's contact number is (734) 335-0468 for any further inquiries.
"In other recent news, ENDRA Life Sciences Inc. has been granted an extension by the Nasdaq Hearings Panel to meet the minimum bid price requirement for continued listing on the Nasdaq Capital Market. The company has until November 20, 2024, to maintain a closing bid price of at least $1.00 per share for a minimum of 10 consecutive trading sessions. In addition to this, a significant majority, 91%, of the Series B Warrants issued during the June 2024 public offering have been exercised, resulting in the issuance of 15,831,864 new shares of common stock. This increases the total number of outstanding shares to 17,280,655.
In other recent developments, ENDRA Life Sciences has reported its Q2 2024 results and strategic updates. The company announced a reverse stock split and detailed six key changes to enhance its performance, including strengthening the management team, revising FDA strategies, and clarifying its long-term vision. Richard Jacroux and Ziad Rouag have joined the team as CFO and Head of Regulatory and Clinical Affairs respectively. Lastly, ENDRA has outlined its focus on pivotal clinical studies for the TAEUS liver device, aiming for completion by mid-2025."
InvestingPro Insights
ENDRA Life Sciences' decision to implement a reverse stock split comes at a crucial time for the company, as reflected in recent InvestingPro data. The company's market capitalization stands at a modest $6.01 million, indicating its small-cap status. This move could potentially address some of the challenges highlighted by InvestingPro Tips, such as the stock's significant price decline over various timeframes and its high price volatility.
InvestingPro Tips reveal that ENDRA is "quickly burning through cash" and "not profitable over the last twelve months," which aligns with the company's reported adjusted operating income of -$9.6 million for the last twelve months as of Q2 2024. The reverse split may help ENDRA maintain its Nasdaq listing and potentially improve its market perception.
Despite these challenges, it's worth noting that ENDRA "holds more cash than debt on its balance sheet" and its "liquid assets exceed short-term obligations," which could provide some financial flexibility as it navigates this transition. Investors seeking a more comprehensive analysis can access 15 additional InvestingPro Tips for ENDRA Life Sciences, offering deeper insights into the company's financial health and market position.
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